FDI rose, investment realization declined

AHMEDABAD: Although Gujarat registered an increase in proposed investments, the actual realization of these investments through implementation of projects declined in 2015. The state, however, fared better in attracting the foreign direct investment (FDI). HMEDABAD
According to data from the the Union ministry of commerce and industry, the investment proposed through industrial entrepreneurial memorandums (IEMs) in the state rose to Rs63,733 crore in 2015 from Rs39,597 crore in 2014.But, investment realization dipped to Rs5,991 crore from Rs40,954 crore in the same period.
Against this, proposed investment in 2012 and 2013 (when PM Narendra Modi was the chief minister), stood much higher at Rs1,26,201 crore and Rs94,288 crore with realization being Rs49,616 crore and Rs15,478 crore, respectively.
"Unlike Modi's tenure as CM, Patel's engagement with industry was minimal as she focused more on the social sector," said an industry player.
Patel came to the rescue of slowdown-hit ceramic and ship-breaking industries by offering incentives and unveiled a slew of policies to promote industrial growth.
On the other hand, Gujarat registered a rise FDI investments over the last two years. Companies like Ford India and Honda Motorcycle and Scooters India Ltd (HMSI) commissioned their plants and Suzuki Motor Corporation (SMC) started constructing its passenger car manufacturing plant at Hansalpur. The seeds of all these projects were sown when Modi was Gujarat's CM. Patel is said to have benefitted from the efforts put in when Modi was at the helm of affairs in the state.